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tv   Mad Money  CNBC  February 7, 2013 6:00pm-7:00pm EST

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it's a bedrock principle of apple itself. i have to admit i have wondered about apple lately. that keeps it from earning a decent return for doing nothing at the moment as you used to be able the ofor so long. i have said that the cash itself has gone from being a positive at a time when so many companies have stretched balance sheets to a negative as it generates a small return. i have suggested they put some of the cash to work, buying the growth that many feels like has been lost. perhaps buying twitter to be more moving aggressively into the social media. or netflix. or even somewhat fa she newsly itunes. all that said i never thought in a million years that somehow apple's become a bad actor. because of its conservative ways of handling its bank hoard. i have simply thought that it should be more creative at figuring out how to put it to use. never sue for them that. see -- ilorne said it reminds me
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of his depression era grandmother. he wants a annual 4% cash dividend. which he says could boost the faltering stock. at least by of late, several hundred dollars a share he thinks he can move it. let me say this. i run a charitable trust that as this a stock in apple and i'm hard pressed to find one that does as good as apple. i could be more critical of the performance of thousands of other stocks. and thousands of other managements than i would have before i would pick a fight with apple. that's why i think that why ihorn can question what they're doing with their cash, i think this is wrong headed. as apple explained in a statement today, the company is in the midst of a colossal throw' year ban to return billions to its shareholders
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that's hardly chump change. i think apple has the right to hold the cash that it has. this is a high quality problem to say the least. a total victim of success issue that can be solved by apple raise its own dividend very nicely and not creating a whole new class of preferred to do so. convoluted rube goldberg like. they're through its own success has been age to accumulate that cash flow more rapidly than anyone including einhorn thought was possible. and my understanding from this afternoon statement is that apple is totally open to doing it, but i'm mindful that an increased dividend may not increase it all that much. intel's yield has little impact on its stock. every manager wants a higher stock price for the hold evers. it stands to reason because he's paid on the dollar size of the holding and in the case of the hedge fund, he can deliver. with such a huge fund in apple,
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einhorn is restless. maybe like my daughter he's upset about the itune generation, the change in the plugs. but i think the biggest crime being attributed to apple has nothing to to with apple at all. it has to do with the fact that the stock ran to 705 in a fit of irrational exuberance. it was almost exactly the same price as it was last year at this time, would it be mired in this wrath? apple is not a victim of its own success. it is a victim of its stock excess. excess which is more -- well, it's in excess of let's see say no more as the stock gone from being high price to low price in record time. i have no doubt that if the company were to institute a bigger buy back it would go higher. perhaps appreciably higher. but if apple were to do in 2013 what it's always done, create the finest products we have never thought of, that's what the market really wants and nothing else. that's what spurs the growth
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here. which is and always will be the magic elixir that all well performing stocks exude including apple. let's not forget something about else. the great thing about stocks is we can sell them. if einhorn is not happy, he's free to sell. he can sell any time he wants. if apple is too cheap, if it's priced multiple earnings of plus ten is too low, it will correct. so it could play with the house's money, they can afford for the market to reward annel with a more fair valuation eventually. otherwise, here's the bottom line. apple's superior products over the last decade, ten years, merit sticking with the company and certainly don't merit a lawsuit trying to pry more creativity out of the cash management. everything else is just parlor game. i'm confident that when the time comes, apple will put that money to work and i hope they raise
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the dividend big. until then, apple you have earned our patience. people give it to them. let's go to kevin in florida, please. kevin? >> caller: hey, jim, thanks for taking my call. i just wanted to let you know you are the godfather of the stock market. >> you're too kind. thank you so much. >> caller: my question to you is, zen ga has great numbers a few nights ago. is this the real deal or just in the shorts squeeze happening? >> i think it's more of a short squeeze because they did guide down. i don't like the gaming business and i'm not crazy about the poker business online. look, could it go to five? yes. do i want to risk telling you to put your money in zynga? no. i think in many ways that's the more important take away. brad in california. >> caller: hey, jim, southern california. dodger blue greetings to you. >> hey, pitchers and catchers. boo-yah. pretty soon. >> caller: spring training is in
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the air. i had a question pertaining to america's sweetheart giant macy's. i know it reported stellar same store sales today. where do we go from here, how do you trade this? >> i was doing a lot of work on macy's today. you know, i think terry lund gren is a terrific, terrific ceo. i think this was a remarkable quarter by macy's. shows you that its philosophy of having prestige, proprietary brands under one roof is working. i say buy buy buy. pull the trigger tomorrow morning. john in california, john? >> caller: jim, john, i'm in sacramento, california. >> man, my old stomping grounds. what's up? >> caller: okay. me and my buddy did our homework on qualcomm about a year ago. we've been hanging on there, did our homework. it seems to be coming around with all these mobile devices. what's your opinion on qualcomm? >> look, qualcomm has just had a remarkable run.
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i feel line i'm recommending the stock on a spike which i don't do. i would buy half and then hope it comes back to 62, 63 to buy the other half. i think your instincts about qualcomm are totally right. it's a real good company and a real good stock. a 6,000% return? i think i don't know about you i think that earns you a little leeway in this game. what apple really needs is the next big thing. that and some patience. "mad money" will be right back. coming up -- european invasion? the debt problems from across the pond, fell off the front page to start the year. but old habits die hard. and tonight, cramer's tuning in to the issues overseas. is our european vacation over? stick around to find out. and later -- room service? is it time to book some room in shares of starwood hotel? cramer is checking it out in the earnings exclusive with its ceo.
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all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer #madtweets. send an e-mail to or give us a call at 1-800-743-cnbc. miss something? head to it's not what you think. it's a phoenix with 4 wheels. it's a hawk with night vision goggles. it's marching to the beat of a different drum. and where beauty meets brains. it's big ideas
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with smaller footprints. and knowing there's always more in the world to see. it's the all-new lincoln mkz. [ male announcer ] when you wear dentures you may not know it, but your mouth is under attack. food particles infiltrate and bacteria proliferate. ♪ protect your mouth, with fixodent. the adhesive helps create a food seal defense for a clean mouth and kills bacteria for fresh breath. ♪ fixodent, and forget it. more "likes." more tweets. so, beginning today, my son brock and his whole team will be our new senior social media strategists. any questions? since we make radiator valves wouldn't it be better if we just let fedex help us to expand to new markets? hmm gotta admit that's better than a few "likes."
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i don't have the door code. who's that? he won a contest online to be ceo for the day. how am i supposed to run a business here without an office?! [ male announcer ] fast, reliable deliveries worldwide. fedex.
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look, you can never be complacent about anything as big as wrenching economy that is still europe. i said they're not impacting us so far, but the measures put in place last year is still working. meaning that europe has shown a degree of stability and i don't want anyone to sell our stocks because of the declining economies there. that would be spain and italy as well as a potential for a real plunge that no one is looking for -- france. my call has been the right call
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so far to start 22013. in fact, it's been right call since sunday when mario draghi said he'd do whatever was necessary to preserve the currency yu union. he has done a great deal. now the free ride could be winding down. draghi talked about how the euro which is powered 10% higher than the dollar is now too strong and how it's hurting european competitiveness. he did not however cut rates. taking back what his predecessor put through since the crisis erupted in 2008. it was a disaster. it helped make europe's crisis much worse than ours. where a fed chief after an initial they know nothing hesitation, then moves swiftly and brilliantly to the lowest rate setting possible. well below europe's rating on a percentage basis. by acknowledging that the european economy is staying weak, but by not cutting rates, draghi succeeded in doing one
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thing. he freaked out the world's markets. we for example look like we were going to have a pretty darn good day this mourning before the opening. but then our futures dropped precipitously. after draghi's statement. at the same time, it did get the euro down versus the dollar. but it's certainly welcome on the continent. i say if you cut rates, then you ought to have accomplished everything he wanted to really do and cement his reputation already somewhat deserving as a top-notch banker but he didn't. which prolongs the agony particularly when the countries are taking rigorous austerity steps and they need more help. draghi's negative statements amount to a wake-up call. it's a wake-up call to put europe on the back of the worries. even as we heard that europe is
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starting to stabilize from a host of companies, it's a decidedly mixed picture. in the fourth quarter conference call by the tremendously successal retailer ralph lauren we heard that scandinavia is improving for the company, but italy and spain are weak. we heard last night from worldwide giant news corp which is owned by my charitable trust which you can follow along at, its italian business is soft. i keep hearing that spain is turning. nevertheless, their 26% unemployment rate is worry some to say the least. but we know we won't get a rate cut any time soon after the meeting this morning. we know the financials took some hits because their financials are tied to europe. even though it's a much lesser degree than a few years ago. stilt that collateral damage is what happened before. because the statements of draghi
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were so frightful. the whole market had to come down at first. we saw the standard & poor's 500's knock down of companies in businesses in europe and companies that are 100% domestic. they put europe in a rosier perspective, but i do not believe we are done with the european-inflicted pain. perhaps the best thing to do right now is to fall to what happened the last time when the stock market began to distinguish our domestic economy and those stocks from their domestic economy. as well as domestic health care companies that would support that. i would wait back to the other companies until they cool off. i'm not advocating we have to keep one eye on europe again. all right. i am saying that we've got to keep both eyes on the world. and we were able to avert our eyes from europe for some time. while, look, we can still be opportunistic about domestic stocks.
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you simply can't be as aggressive now as you might have been in january about the internals. given the run we have had, and the on going weakness that plagues the continent. but to get bearish because of europe, no. still not going there. there's still plenty to like on weakness. and yet, yet, again, i am a buyer on dips. including all that are inspired by european worries as we saw unfortunately again today. sandy in ohio, sandy? >> caller: yes. three granddaughter boo-yah to you today. i have a question on vodafone. because of their continued weakness in revenue primarily due to europe but their increase in the united states with verizon wireless and the emerging markets to me it makes the stake in verizon wireless more open to play. do you think they'll sell part or all of the stake in verizon wireless to get the -- off set the loss of revenue and if so, what effect would that be to europe and america and the
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emerging markets? >> i don't think they'll sell it because when a company has a lot of bad assets and when they have that one fabulous asset they don't sell it to fund the weaker assets because i think vodafone has great assets, but some are weak. they yielded 3.8%, that's the current yield. the european one has changed. verizon has a 4.63% yield. doing very well. a much better idea to sell vodafone and buy buy buy verizon. let's go to dean in virginia. dean? >> caller: hey, big nittany lion boo-yah to you. >> unbelievable record despite boo-yah. >> caller: i bought mcdonald's a few years ago and i have a 40-point gain thanks to your advice. since then they have upgraded or -- excuse me, upgraded heavily. should i go higher ok take the money and run? >> i want you to sell half
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because i love playing with the house's money. now, that's just my rule. wouldn't matter how great the stock is. i'm going to say that. but i'll say this right here, right now. i think don thompson is about to embark on technological marvels in the food market. there were two stories about how calories have come down in restaurants. i think mcd is a good stock to own. not inconsistent. i love playing with the house's money. europe is back on the radar again. doesn't mean you can't look for domestic opportunity but you have to recognize that internationals and banks they're going to be a little uncertain for some time to come. stay with cramer. coming up -- room service? is it time to book some room in shares of starwood hotels? from the saint regis to the "w" cramer is speaking with the ceo. ♪
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tonight we're circling back to starwood, hot. one of the best managed hotel names out there. we kicked off earning for the group. you may not have heard of starwood. but you definitely heard of their brand, st. regis, "w" hotel, sheraton, meridian. they have 1,134 properties and in nearly 100 countries. they reported it's no surprise that the terrific company beat
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earnings estimates by 5 cent and topped the revenue estimates. the available per room the key metric was up 4.1% worldwide. that's fantastic. the company of course gave inside guidance for next quarter. let's check in with the president and the ceo of starwood. find out more about the -- where the company is headed. >> great to see you again. great to be back. >> thank you. i have been talking on the show about how a lot of people feel valuations are extended. i'm looking what you've accomplished in the last five years an i'm trying to figure out when the company will get rewarded. you are so much better than you were and yet you're not getting that price yesterday for what your stock is worth. >> this an interesting thing. we're priced in terms of the stock was where it was before the crisis. we have 20% more hotels. we are more fees generating the revenues than ever before. this is a transformation. yeah, the star is up from where it was, but i think there's
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still upside as we move forward. >> do you have to do anything with the capital structure to demonstrate that change? we have seen what marriott does. they've done a spin for time share. we have seen others do real estate investment trusts or do you think the market will recognize and give you the reward you deserve? >> our focus right now is continuing to grow the fee business. so we have 300 hotels in our pipeline around the world. 85% of those are in emerging markets but the great thing about the management of the franchise business is, you get unit growth and you get rev par growth and incentive fees. this is a cashless growth which is what investors like. >> i want to talk about just the issue of the globe. we are seeing on this show i feel others aren't, a resurgence in china. you're well positioned. an incredible come back in latin america, particularly mexico. europe's stabilizing. i say it's good. in that environment, you have --
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you have correctly placed your hotels. >> well, it's really interesting for us, our business is so dependent on economic activity, business confidence and consumer confidence. you're exactly right. january in china our rev par numbers with up 6%. that's after a slow down. the government transitions almost behind us, chinese new year will be behind us. china is picking up. latsen america was the strongest growth region, slowed down last year because of argentina. we haven't talked about africa which is another place where global capital flows are coming in in ways we have never seen before. >> let's talk about china for a moment. we see china as having a big year in 2013. a lot of people had penalized your stock, tank it down to the -- well at that point into the 50s because they felt you were overexpanding in china. you're probably as a percentage of what people are putting their capital in the highest of any of the companies i follow in terms
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of commitment to china? >> well, we're long term bullish on china. today, we have more hotel rooms in china than we do in europe. we have a third of our corporate growth coming from new hotels in china. by the way, these are great hotels. they're great management contracts and nobody wants our capital there. this is all cashless growth, with local money being invested. >> now, there's also a perception both with china and for the others that your business is cyclical. but you laid out better than any company i know it's a secular growth story travel. >> if you look at it, the global middle class has doubled from 1 billion to 2 billion. in the next 20 years it will go from 2 to 5 billion. this isn't your dad's five-year cycle business anymore. this is a in fact a generation, a once in a lifetime shift in
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travel demand around the world. we are seeing it in places like dubai where it's massive global crossroads for travel from everywhere around the world. >> at the same time, you talk in your -- you say our balance sheet has never been stronger and we have ten-year senior notes. should you do something massive, should you do what einhorn suggested you should borrow the money and recapitalize because it's so cheap? >> with interest rates as low as they are, effectively central banks in europe, the u.s. and japan are creating free market. >> yes. >> so we want to be careful of though if there is another down turn we want to have a balance sheet. we're playing this safe. you're right. if you wanted to take a risk you could lever up and do that. >> but repurchase 6.3 million shares. >> it would be possible but the
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business we have, the underlying value means we want to play this safe. because we're going to be very successful just doing this business one step at a time. >> okay, is there a class of hotels that you're not in yet that you should be in? super, super premium, low low low? would that help? >> we're pretty much to the sto of the market to the high end of the middle if you will. global brands don't matter as much. it's very hard to manage for a big profit margin. you need a lot of units to get the same kind of fee. so a typical sheraton will do as in fees as seven or eight mid market hotels somewhere else. >> i want to understand this, i follow marriott well. they had underperformed. they did this tremendous time share spinoff. your vacation -- start with vacati vacation ownership. you're a major player in the vacation ownership business, that's the time share. if you just did a stroke of the pen and did what marriott did,
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your stock could do appreciate 20 or 30%, no? >> we look at our time share business, we have taken about $1 billion in cash out of that business. >> okay. >> in the last four or five years. if we had spun that business off, we might have gotten that in an ipo. but we wouldn't own the business today. so we've got $150 million in ebitda and the billion dollars we have used to pay down the debt. we like what we have done so far. >> but at the same time, i mean, clearly, you can't be happy. i mean, your stock is not reflecting all the greatness. >> well, there's more to come. as we look ahead, as we look at the development around the world, the unprecedented growth in demand for high-end travel, we can be patient in this business. >> and please -- do you have anything that is in wait for us for the united states -- >> say that again? >> any new properties in the united states? >> we had the st. regis in bell harbor which was the most anticipated luxury hotel opening
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not just in the u.s. but in the world. right now we're selling units there -- residential units, we're 75% sold out. >> already? how many -- how many domestic? >> about 70% non-u.s. buying. >> in bell what are for? >> coming from latin america, canada, it's amazing. it's a u.n. of people with affluence coming into that market. >> only 30% american? w too, right? >> it's right down the street. >> it's a quandary. i was so glad you said you wanted to come on the show. you may be the largest. thanks to the president and ceo of starwood hotels. it's hot. it's going to get hotter. stay with cramer. coming up -- can you handle the heat? cramer gets you fired up for a searing hot "lightning round." all stations come over to mission a for a final go.
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it is time, it is time for the "lightning round."
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what's -- and the question at a time. my staff does this on the fly. we have this sound and then the "lightning round" is over. are you ready, it's time for the "lightning round" on cramer's "mad money." let's start with mitch in california. >> caller: hey, jim, listen i know you have a birthday coming up and the reason i know is because my daughter and i share your february 10th to have a j shindig. >> caller: well, the reason i want i'm calming i want to be the first to wish you a father/daughter familial happy birthday to you. >> thank you so much. you made my day. what's up? >> caller: well, the stock i'm interested in is vector group. i know you have talked about this stock in the past. but between their big dividends, the recent real estate buys and all the pieces of companies they own including optgo i want to
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get your current opinion on the stock? >> i think it's a good stock frankly. the yield -- when bonds were higher i was uncertain -- i'd send people to at rhea. now, obviously it's a political question. you might not want the tobacco company to help. susan is in michigan. >> caller: hey, southern boo-yah, jim. >> what's up? >> caller: conoco philips. >> natural gas has to go much higher. it doesn't have the growth. you are being paid to wait. all that said, there are so many better stocks in the oil patch. i don't want you touching that one. jason in massachusetts. jason? >> caller: hey, jim, i don't think that china is a concern for this one. you know, china -- >> yeah? >> caller: liquidity services,
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they just had a disappointment. and i don't know -- if you were them would you buy back stock here? >> if i were them, i'd have more research done on the company than i have. i can't give you a snap judgment. i have to come back to liquidity services. because i was not surprised it didn't do well. so we have to come back and do more work. let's go to joey in maryland. joey? >> caller: boo-yah to you jim. >> boo-yah ravens. >> caller: oh, yeah. hey, i'd like to make a shout-out to court marks. >> okay. >> caller: i'm calling to -- >> does he play left tackle? >> caller: no. >> anyway, go ahead. >> caller: all right. i'm calling to ask about booz allen hamilton -- >> good slow grower. i'm going to tell you -- it's not great, but good. i think that accent chur is the king of consulting. let's go to al in illinois. >> caller: this is al from illinois. >> how are you? >> caller: fine.
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i bought beamers on your advice. >> well, 52-week high. a real horse. by the way, so is that berry which has done very well. i like beam us. it does stand for buy my stock. let's go to ali in california. >> caller: great talking with you, mr. cramer. my question is mastercard. >> really interesting, stephanie link who is portfolio manager with me, we both said the same thing when we saw visa's number today. this group is played out for now. i think the credit card companies have to pull back. i would not be a buyer of visa and my trust -- and there are other fish in the sea. let's go to predeep in ohio. >> caller: thank you for taking my call. elnk -- >> no.
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earth link has almost no growth at all. don't buy. i think it's just moved up and it's time to trim. there's so many good internet plays. we don't need earth link. by the way, it's a communications company. i would go with verizon, century -- ctl. century link, that's a better one. very good yield. let's go to rob in florida, please. rob? >> caller: my daughter loves you too. >> okay. i thought that was an imitation of my in the high-pitched voice. like my friend does. how you doing, cramer? i can imitate murphy doing cramer. >> reporter: >> caller: first, i want to thank you on the recommendation of over a year ago. >> it's a hoesrse, it's secretariat. >> caller: here's my ticker question.
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it's seh, star tech. i have done pretty well on it. and they were acquired for $8 by poli one corps. the president was elected because of her experience with plastics around environmental solutions. do i continue to ride the plastics wave or bail? >> we have to take advantage of the stocks that we like more at this point and i'm going to say if -- tell if you went in that particular sector i'm going to send you to georgia gulf. why georgia gulf? because that's the one that they just did a spinoff of -- by -- with ppg. i think that that represents the best value. it's now called axll. that's the one i want you to be in. let's go to art in illinois. >> caller: yes, sir, good around. first time caller. my question for you, sir, what your thoughts are on leapfrog? >> everybody wants me to recommend this stock.
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you know, toy technology company. i don't need that. entertainment. there's so many good technology companies. you know what i would buy over that one? how about apple. down on its luck. and that, ladies and gentlemen, is the conclusion of the "lightning round." the "lightning round" is sponsored by t.d. ameritrade. coming up, with more than 30 years of experience, you've got the markets brightest mind at your disposal. so what are you waiting for? e-mail or tweet your most pressing questions around stay tuned to see if they get answered on the air. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪
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all on thinkorswim. from td ameritrade.
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jim cramer looking out for you. >> thank you, sir, for helping us average joes. >> thank you for all you door to the small investors. >> thank you for sharing your knowledge with the every man. >> i love doing it for you. any time i can say thank you it's great. >> anywhere, any time. any place. answering the call of cramerica, weekends 6:00 and 11:00 eastern on cnbc.
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a lot of people going to jim cramer or @jimcramer on twitter. including today, desean jackson who took his picture with me and you'll notice my avatar and my dad and he's wearing number 10. so we absolutely have two number tens checking in. so we have to do some work. let's do some mad tweets. here's a tweet from @ann her meese 7 who writes i'm curious what's your opinion on hewlett-packard? should i cut my loss or wait for new movement? i think hewlett-packard is one of the most intriguing stocks out there. because it fell down 40%, actually 44% last year. it's the worst performing stock in the dow. yet, the balance sheet is not that bad. they could clean up some debt, "the wall street journal" suggested that today. and the possibility that meg whitman can engender a turn around means i would not sell
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the stock here. however, just so you know she's going to get about a two-quarter honeymoon and if she doesn't turn it around, people will dump it again. let's own it for two quarters and let's see what happen. i didn't think it was available until i saw the dell leverage buyout. here's one from andy rush @a rush 82. he asks, in a market where most stocks trade so similarly, why do abbott which is abt, and abbv trade so differently? okay. these are a breakup story. we have liked abbott forever. it has been a long core position for my charitable trust. and we sold the abvy and which can kept the abbott because abbott is the slower growth drug portion of the company and it has a 4% plus yield. they just had fantastic news that a company that is working
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on a competitive drug dropped their drug. i like growth. abbott the other side has the growth the diagnostic, medical devices that's what you should own. that's what i kept for action alerts. here's a message from from @trimprobrandon. what's the deal with k key energy. i'm fresh out of energy and trying to diversify with an oil that has a great peg rate. here's the problem with key. it's one of the largest service companies that are out there. for oil service. hate as lot of natural gas and the natural gas drill has been cut dramatically in this country. once natural gas prices go up, key goes up. on the anti-fracking stories i understand the companies are using waste water to pump the fracking fluid with. you can imagine waste water how is the epa going to fight that? apparently the waste water is cleaner when it is done. that's a story that involves heckman. that's a waste water company if you want to go into a service
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company with more risk, but certainly more reward. now, he's another tweet fr from @jg, it says can we tip a toe into petri bra yet? i had to reflect on the fact that pbr is my favorite beer. i like it on draft, i like it in cans. pbr is a stock, it's at 16. it has been horrendous. it seemingly goes down week after week. yet it still has a $100 billion market cap. if you want some brazil exposure, may i suggest you buy core labs. not that long ago, mr. democrat -- dempsure said they're getting giant brazilian work. that oil company has a poor record of being shareholder friendly. we're back after the break. [ male announcer ] any technology not moving forward
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is moving backward. [ engine turns over, tires squeal ] and you'll find advanced safety technology like an available heads-up display on the 2013 lexus gs. there's no going back. we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day after day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] one pill each morning. 24 hours. zero heartburn. more "likes." more tweets. so, beginning today, my son brock and his whole team will be our new senior social media strategists. any questions?
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since we make radiator valves wouldn't it be better if we just let fedex help us to expand to new markets? hmm gotta admit that's better than a few "likes." i don't have the door code. who's that? he won a contest online to be ceo for the day. how am i supposed to run a business here without an office?! [ male announcer ] fast, reliable deliveries worldwide. fedex.
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it happened again. another partner or mlp. and i think another win. this time, it is enterprise product partners with an 11 million shares price the other day at $54.56. a deal that board executives have filed -- all the sizable amounts no payment the tape stuff. of course it will be used to pay down dits so the company can expand again. that's the m.o. of the oil and
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limited partnerships. they're in the epicenter of the nascent gas boom that people are buzzing about in this country. and they might be among the shrewdest companies of the land. they have eagle ford and marcellus. it's the pipeline company that's just been -- that has about the best exposure to the petri chemical refineries that crave the natural gas liquid feeds stock. it transports liquid oil and refined products. and it pays 66 cents per unit each quarter. just giving -- i gave you a 6.5% increase. like many of the many others, they can't lay down pipe fast enough. even as the vast network would have every important field other than the balken covered. it's causing the bizarre dichotomy between the price and they're pumping out using the
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c-pipe. i used to go the other way. now that's so much oil going into cushing there's no room for this stuff. there's so much more oil though. that enterprise is expanding its pipe at a voracious pace to handle it. these partnerships are notorious, they're a point and a half off the high. it did trade down from 55 to 49 not that long ago. the companies as part of the tax reform, it didn't. that said i still think it's a decent entry point to get some of the 4.79% yield. i'd hope it goes to a better yield. keep in mind this is the big daddy of the mlps with $50 billion market capitalization. it will sell down big if another big one offers stock. it has the biggest opportunity of them right now. i believe that's bigger even than kinder morgan and more than energy transfer partners. even as etp yields 7.7%.
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trust me, i learned the hard way that can't make up for the price depreciation when they're as poorly run as etp was. my charitable trust sadly knows. stick with quality. it's obvious that the insiders are. who am i to say they're wrong? i hope you get a chance to buy it underneath the price of the deal. that will be a bargain. this weekend at the super bowl, everywhere i went people asked me in a low yield environment what represents the best yield right now with value? i pointedly said nothing, fixed income. you have to own master limited partners. i will tell you have it not stressed these on this show, i have not stressed these kinds of stocks nearly enough. fortunately the biggest one just did a deal. the stock is 50 cents above the price. take advantage of it and buy some. if it goes down, buy some more. stick with cramer. [ woman ] when you own your own business,
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it's a challenge to balance work and family.
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i often talk to you about the out years. in other words the way to value super growth stocks to see how they deal in 13, 14, 15, and linked in is being value at the 2013, and it looked rich. until you got to tonight's quarter you realize it's not that expensive. particularly on the out years. linked in can go higher. much higher. there's always a bull good evening, everyone. i'm larry kudlow. this is "the kudlow report." chicken little is alive and well in washington. here's the thing, the sequester cuts are tiny when you consider the consider spending explosion in just the last five years and
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we have the numbers to prove it. >> and secretary of defense leon pan ate made another plea today saying the nation's security would be compromised by the sequester cuts. is that true? president obama's undersecretary of defense says prudent cuts are necessary and comparable. and we'll talk about using drone strikes to kill traitorrous citizens overseas. "the kudlow report" begins right now. >> first up president obama is starting to feel the heat. republicans are less and less likely to give in to his demand to raise taxes and they are publicly presenting a united front over impending budget cuts. that means sequester, which was
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obama's idea. it's going to happen. but listen to how the president attacked republicans today. >> they recognize that the sequester is a bad idea, but what they have suggested is the only way to replace it now is for us to cut social security, cut medicare and not close a single loophole, not raise any additional revenue from the wealthiest americans or corporations. >> there you go. additional revenue. joining me, robert costa. i was at the heritage foundation's seminar today for new and old congressional members. the vibe i picked up is, a, no new taxes and, b, let's cut spending. >> it's quite a scene on capitol hill. house republicans are very nervous about the sequester. back home in their districts, a lot of them represent military
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families, defense mms and employees. tharp not going to accept the president's demand for tax increases zip thought the defense lobby went in to see the president. do we know what happened there? big defense companies. what happened? >> the president brought in a lot of defense executives to scare house republicans towards revenue, towards tax hikes. but the house republicans keeps saying to the president bring us some replacement cuts, don't bring us tax hikes. >> the only thing i heard today, robert, at this baltimore meeting of the republican house members is, okay, you want to change this thing, let's put some entitlement cuts in there, let's extend the eligibility age or let's have other budget cuts. that's the only condition. the trouble is if you start monkeying around with this, it all might fall apart. >> that's a great part but the house republicans think they're in a great negotiating position because even if nothing happens, these are real cults and they're going to happen on march 1st, $85 billion. the president can play a chess game on politics, but these cuts are happening and republicans
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